4SC AG / Interim Report
07.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Planegg-Martinsried, 8 August 2008 The drug discovery and development
company 4SC AG (Frankfurt: VSC; Prime Standard Segment) today published the
results according to IFRS (International Financial Reporting Standards) for
the first half of 2008, which ended on 30 June 2008.
During the second quarter of 2008, net sales totalled 1.34 million Euros,
which represents virtually four times the figure for the same period last
year in the amount of 348,000 Euros. The operating result of - 2.39 million
Euros represents an 13.6% increase compared to the 2.10 million Euros loss
in the second quarter of 2007. The period result came to - 2.24 million
Euros (second quarter 2007: - 2.09 million Euros) or - 0.12 Euro per share
(second quarter 2007: - 0.17 Euros per share). As of 30 June 2008, funds
totalled 13.56 million Euros.
Highlights in the second quarter of 2008:
Announcement of the acquisition of the oncology projects of Nycomed for
14 million Euros in cash
Cooperation with Erlangen-based ViroLogik GmbH on the compound SC68896
(now: 4SC-206) in the indication of viral infections
Nearly four per cent participation in the Bonn-based biotech company
Nexigen GmbH with the exclusive option to take over the company entirely
within a period of 15 months
Appointment of Dr. Thomas Strüngmann and Helmut Jeggle from principal
shareholder Santo Holding as from 5 June 2008 to the supervisory board of
4SC AG
Acquisitions and clinical progress
The most important accomplishment during the past quarter was the
announcement of the acquisition of the eight oncology projects of the
pharmaceuticals company Nycomed. One of the compounds is in clinical phase
I, seven further drug candidates are in preclinical stages. The successful
conclusion of the 14 million Euros transaction was announced on 31 July
2008. All Nycomed projects, as well as 4SC AGs own drug candidates, are
currently being prioritised in order to determine on which of the projects
to focus available scientific resources in future.
'In any case, we intend to stick to our stated corporate strategy of
accompanying our most promising projects up to the clinical proof of
concept in order to subsequently enter into appropriate licensing deals
with the biopharmaceutical industry for further development and marketing
purposes,' commented Dr Ulrich Dauer, CEO of 4SC AG.
As already described in detail in the press release of 31 July 2008, 4SC AG
has renamed all development substances within the framework of integration
of the new projects, in a move designed to further enhance the transparency
of the research pipeline. In the case of 4SC-101 for the treatment of
rheumatoid arthritis, preparations are underway for an advanced phase II
study. The aim here is to enhance the efficacy profile in combination with
already established therapies even more clearly.
The preclinical compound 4SC-206 developed by 4SC AG as a cancer therapy is
to be developed further as a treatment for viral diseases in collaboration
with ViroLogik GmbH. The development costs incurred in the course of the
joint research activities are to be split. Moreover, new preclinical data
during the reporting period have proven that the new forms of direct
administration into the head could enable the substance to be effective for
example in the treatment of brain tumours.
During the reporting period, a contract research institution was chosen to
conduct the clinical phase I study on the compound 4SC-203 tested in the
treatment of acute myeloid leukaemia (AML). Provided that the current
analysis of the safety data furnishes appropriate results, this could lay
the foundations for filing for a clinical test.
The results for the first six months of 2008 (IFRS)
The revenues of 1.98 million Euros (first six months of 2007: 635,000
Euros) trebled year-on-year. Of this amount, 1.23 million Euros were
generated by the business segment 'Collaborative Business'. The 750,000
Euros generated in the 'Drug Discovery and Development' segment originated
entirely from the licensing and cooperation agreement with ViroLogik GmbH.
Operating expenses totalled 6.83 million Euros (first six months of 2007:
4.96 million Euros), which represents an increase of 37.7% year-on-year. Of
this amount, 4.67 million Euros represent research and development costs,
which correnspond to an increase of nearly 45% compared to the first six
months of 2007. The increase in administrative costs from 1.35 million
Euros to 1.52 million Euros is primarily attributable to rising personnel
costs.
During the first half of 2008, 4SC AG posted an operating loss of 4.71
million Euros (first six months of 2007: - 4.26 million Euros). Taking the
financial results into consideration, this results in a net loss for the
first six months of the year of 4.46 million Euros (first six months of
2007: - 4.24 million Euros) or - 0.23 Euro per share (first six months of
2007: - 0.36 Euro per share).
4SC AGs equity stood at 15.31 million Euros on 30 June 2008 compared to
19.62 million Euros on 31 December 2007. This results in an equity ratio of
79.9%, which represents a drop compared to the equity ratio of 88.9% at the
end of 2007. This ratio is set to increase significantly during the second
half of 2008 as a consequence of the capital increase conducted on 14 July
2008 after the end of the reporting period which brought in gross proceeds
of 29.45 million Euros.
Outlook
In terms of its research activities, 4SC AG intends to adhere to its
targets defined for 2008. In the area of 'Drug Discovery & Development',
this involves a two-track strategy for the lead compound 4SC-101. On the
one hand, the management intends to press ahead with the advanced
negotiation with the biopharmaceutical industry with a view to achieving a
licensing agreement on attractive terms. However, in order to further
enhance product value, preparations are underway for a clinical phase II
study in the area of rheumatoid arthritis as well as a phase IIa study for
chronic inflammatory bowel diseases (e.g. Morbus Crohn, Colitis Ulcerosa).
Following the successful completion of the capital increase in July, the
subscribed capital of 4SC AG increased to some 28.5 million Euros. Parts of
the gross proceeds of around 29.45 million Euros were used to finance the
acquisition of the oncology projects of Nycomed in the amount of 14 million
Euros. In order to ensure the prompt and high-quality development of all
pipeline projects, 4SC AG intends to strategically enlarge its workforce.
In connection with the successful expansion of the Research and Development
pipeline, 4SC AG anticipates a moderate rise in development costs compared
to the original budget. It is expected that further projects will reach the
clinical development stage by the end of the year. Furthermore, 4SC AG
expects firstresults of the clinical phase I study for the anti-cancer
agent 4SC-201 from the Nycomed pipeline to be available by the end of the
year.
'During the quarter under review we were once again able to prove that even
in a difficult capital market environment, 4SC AG is still capable of
maintaining its strategic capacity to act,' commented Dr Ulrich Dauer, CEO
of 4SC AG. 'With the new funds and the expanded project pipeline we now
consider ourselves to be excellently prepared for the second half of 2008.
Thus, for example, we are confident that in the months to come, we will be
able to convince our shareholders with interesting news on our projects,'
added Dauer.
About 4SC AG:
4SC AG (ISIN DE0005753818) has been listed in the Prime Standard of
Frankfurt Stock Exchange since 15 December 2005. Founded in 1997 and now
with a staff of 77 employees, the company develops novel drug candidates
against inflammatory diseases and cancer. 4SC AG utilises its patent
protected platform, to create a sustainable project pipeline of drug
candidates, which are to be developed up to clinical efficacy in early
clinical phases ('proof of concept') and subsequently partnered with the
pharmaceutical industry in return for advance and milestone payments as
well as royalties. There are currently eight projects in the development
pipeline and a rich pool of further discovery projects. Clinical phase IIa
for he first project for the treatment of rheumatoid arthritis has already
successfully been completed. An additional project for the treatment of
various cancers is currently completing a clinical phase I trial. Further
projects are in advanced pre-clinical stages.
Further information is to be found at www.4sc.com.
Legal Note
This document may contain projections or estimates relating to plans and
objectives relating to our future operations, products, or services; future
financial results; or assumptions underlying or relating to any such
statements; each of which constitutes a forward-looking statement subject
to risks and uncertainties, many of which are beyond our control. Actual
results could differ materially, depending on a number of factors.
For more information please contact:
Bettina von Klitzing
Manager Investor Relations & Public Relations
4SC AG
Tel.: +49 (0) 89 70 07 63 - 0
Bettina.von.Klitzing@4sc.com
DGAP 07.08.2008
---------------------------------------------------------------------------
Language: English
Issuer: 4SC AG
Am Klopferspitz 19a
82152 Martinsried
Deutschland
Phone: +49 (0)89 7007 63-0
Fax: +49 (0)89 7007 63-29
E-mail: public@4sc.com
Internet: www.4sc.de
ISIN: DE0005753818
WKN: 575381
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: 4SC publishes results for the first half of 2008
| Source: EQS Group AG